On August 1, Ceradyne Ltd. accepted a $26,600 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry' for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement) Date Account Titles and Explanation Debit Credit 100
On August 1, Ceradyne Ltd. accepted a $26,600 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry' for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement) Date Account Titles and Explanation Debit Credit 100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:On August 1, Ceradyne Ltd. accepted a $26,600 note from Borges Ltd. in settlement of an account receivable. The note bears interest
of 6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on
September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the
above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do
not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record entries in the order
displayed in the problem statement.)
A
Date
Account Titles and Explanation
Debit
Credit
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